Where the gap between income and rent is widest – and growing

The firm started by identifying the median rent across all SA2 areas as of March 2024, and then calculated the weekly income that would be required to ensure that the cost of housing was equal to 30 per cent of earnings. The firm then calculated the difference between that ideal income for housing security and the reality of what people in that community are earning per week on average.

The firm found that Byron Bay, which includes the suburb proper as well as Suffolk Park and Broken Head, had the largest gap between income and rental cost, with locals needing to earn an average of $3,805 per week to comfortably afford a typical rental, and Byron Bay residents earning on average $1,901.77 less than that.

Queensland communities dominated the rest of the top five, with Mermaid Waters and Noosaville rounding out the three biggest income gaps. In fact, NSW and Queensland were the only states within the top 10, though the firm released state-level data for NSW, Victoria, Queensland, South Australia, Western Australia and Tasmania.

The communities with the latest disparity between income and rent as of March 2024 were:

Byron Bay, NSW: $3,805 p/w required to rent comfortably, $1,901.77 more than the current household income level.

Mermaid Waters, Qld: $3,717 p/w required to rent comfortably, $1,808.41 more than the current household income level.

Noosaville, Qld: $3,099 p/w required to rent comfortably, $1,585.53 more than the current household income level.

Runaway Bay, Qld: $3,027 p/w required to rent comfortably, $1,522.06 more than the current household income level.

Benowa, Qld: $3,458 p/w required to rent comfortably, $1,369.04 more than the current household income level.

Burleigh Waters, Qld: $3,169 p/w required to rent comfortably, $1,277.23 more than the current household income level.

Matraville - Chifley, NSW: $3,555 p/w required to rent comfortably, $1,233.23 more than the current household income level.

Hope Island, Qld: $3,324 p/w required to rent comfortably, $1,226.26 more than the current household income level.

Banora Point, NSW: $2,611 p/w required to rent comfortably, $1,177.48 more than the current household income level.

Kingscliff - Fingal Head, NSW: $2,847 p/w required to rent comfortably, $1,173.39 more than the current household income level.

In Victoria, the area with the largest income gap was Melbourne CBD North, with the weekly income required to rent sitting at $1,933, which is $747 more than residents’ current income.

Victor Harbor topped the list in South Australia, with $1,564 required for a rental, a gap of $499.

Western Australia’s least affordable suburb compared to income was Busselton West, with a required weekly income of $2,167, leaving a $695 deficit.

Tasmania recorded the smallest gap for its top suburb, with Glenorchy’s standard rental price requiring residents to earn $1,645 per week, which is $400 more than they generally take home.

Mike Mortlock, managing director of MCG Quantity Surveyors, said the findings of the report revealed the “harsh reality many Australians face – a reality where the dream of living in a prime location is increasingly out of reach due to the widening gap between wages and rental prices”.

He noted that such disparity has significant implications for the wider community.

“When a significant portion of a household’s income is dedicated to rent, there’s less available for other expenditures. This isn’t just a problem for renters; it’s a challenge for the entire local economy,” Mortlock added.

He’s hoping the report will find its way into the hands of policymakers who might regard it as a warning bell that it’s time to take action.

“We need innovative solutions to bridge this affordability gap. It’s imperative for the sustainability of our communities and the overall health of our economy,” he said.

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